Boeing Likely To Restart Aircraft Deliveries To China As Trade Relations With US Improve

<p>After a temporary halt linked to escalating trade tensions, Boeing appears poised to resume aircraft deliveries to China. A Boeing 737 MAX jet, bearing the markings of Xiamen Airlines, departed from Seattle on Friday, marking the first stage of the route typically used to transfer jets to China via the company&rsquo;s delivery channel.</p>
<p>Flight data from FlightRadar24 confirmed that the aircraft was headed for Kailua-Kona, Hawaii&mdash;a common refuelling point on the trans-Pacific route, reported Reuters.</p>
<p>Although Boeing has not disclosed the final destination of the jet, the timing aligns with a thaw in trade relations. Deliveries to Chinese customers ceased abruptly in April as a result of retaliatory tariffs sparked by deteriorating relations between Washington and Beijing. A spokesperson for Boeing declined to offer further details, while representatives from Xiamen Airlines and the Chinese government were not available for comment, the news organisation reported.</p>
<h2><strong>Trade Talks Signal a Shift</strong></h2>
<p>Tensions began to ease after the US and China reached a tentative agreement on May 12 to suspend the majority of tariffs for a 90-day period. President Donald Trump announced that negotiators from both countries would reconvene on June 9 in London to discuss a more permanent trade solution. The shift in policy has sparked renewed optimism about restoring commercial ties in the aerospace sector.</p>
<p>Boeing CEO Kelly Ortberg confirmed on May 29 that aircraft deliveries to Chinese carriers were expected to resume in June. The company previously stated that due to tariffs, Chinese customers would not be accepting new aircraft, and it was considering reselling some of the planes originally destined for China.</p>
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<h2><strong>Impact on Inventory and Production</strong></h2>
<p>In April, Boeing moved at least three 737 MAX aircraft back to the US from its Zhoushan completion facility near Shanghai, where jets undergo final preparations before delivery. Notably, the same aircraft that recently took off for Hawaii was the first one returned from China. Despite interest from other airlines, Boeing has held onto these planes and has not redirected them to alternative buyers.</p>
<p>China is a crucial market for Boeing, representing approximately 10 per cent of its commercial aircraft backlog. The company &nbsp;anticipated &nbsp;that 50 aircraft would be delivered to Chinese carriers over the rest of the year, with 41 of those either completed or under production as of April.</p>
<p>While Beijing has not publicly commented on the suspension of Boeing deliveries, it did acknowledge that the US-imposed tariffs had severely impacted both Chinese airlines and the aircraft manufacturer.</p>